TWO special-purpose acquisition companies (Spacs) – Novo Tellus Alpha Acquisition (NTAA) and Pegasus Asia – announced differing redemption prices for their shares this week. This was even though both had the same initial public offering (IPO) price of S$5 per unit.

NTAA will let investors redeem S$5.18 for each Class A share, higher than the S$5.03 rounded-up price offered by Pegasus Asia.

Peggy Mak, research manager at Phillip Securities Research, described NTAA’s redemption price as a “positive surprise”. She noted that the price translates into a return of about 3.6 per cent over two years.